Hufvudstaden AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

It's shaping up to be a tough period for Hufvudstaden AB (publ) (STO:HUFV A), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr569m, statutory earnings missed forecasts by an incredible 42%, coming in at just kr1.54 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the recent earnings report, the consensus from five analysts covering Hufvudstaden is for revenues of kr2.33b in 2026. This implies a disturbing 29% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 8.5% to kr5.49 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr2.36b and earnings per share (EPS) of kr6.76 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

See our latest analysis for Hufvudstaden

The consensus price target held steady at kr134, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Hufvudstaden analyst has a price target of kr140 per share, while the most pessimistic values it at kr125. This is a very narrow spread of estimates, implying either that Hufvudstaden is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 50% by the end of 2026. This indicates a significant reduction from annual growth of 7.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hufvudstaden is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr134, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Hufvudstaden. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hufvudstaden going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Hufvudstaden you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.